1 No.AIRF/214 Dated: September 11, 2014 The General Secretaries, All Affiliated Unions, Dear Comrades, Sub: Brief on the outcome of Full Board Meeting, held on 08.09.2014 on induction of FDI in the Railways AIRF vide its letter No.AIRF/60 dated 14.07.2014, addressed to Hon’ble Minister for Railways, has raised its strongest protest against induction of FDI in the Railways. As a result of strong protest against Government of India’s move of FDI in the Railways, a meeting was held today in Rail Bhawan between Full Board(CRB, MS, MT, ME, ML, MM and FC and others) and both the Federations. AIRF was represented by Com. Rakhal Das Gupta, President, Com. Shiva Gopal Mishra, General Secretary and Com. J.R. Bhosale, Treasurer. At the outset, CRB explained in detail, the background of the FDI in Railway Sector, a PowerPoint Presentation was also made on the FDI. While reacting on the issue, President/AIRF, Com. Rakhal Das Gupta, opposed the proposal of the Government for inducting FDI in the Railways. He pointed out that AIRF is very much stakeholder in the Railway Industry, and without having any discussion with the Organized Labour, the government has unilaterally decided to induct FDI in all the sectors of the Railways, viz. Construction, Operation and Transportation. In the support of his argument, he narrated, how AIRF could stall the efforts of Rakesh Mohan Committee for privatization of Indian Railways. He also mentioned that the Government had foregone over 5 lakh crore of rupees of Corporate Houses, but they deny the demand of AIRF to reimburse Rs.20,000 crore annually, what the Indian Railways had to bear on social burden annually. He also mentioned that Indian economy could insulate itself from the risk of international crisis because of large amount of domestic investment. FDI will be a potential danger not only to the Railways, but also on the economy of the country, Rakesh Mohan Committee and the proposal of privatization of manufacturing and maintenance workshops of the Indian Railways by the Planning Commission and sincere efforts made by the Organized Labour in opposing, safeguarding and continuance of existing section/system in the hands of the Indian Railways. He gave details of Income Tax relief and other benefits, over Rupees Five Lakh Crore annually, extended to Corporate House, whereas Indian Railways was not given justice by 2 reimbursing social burden that the Indian Railways have to undertake about Rs.20,000 crore per annum. He said that, the AIRF is of firm view that the government is working on the advice of Shri Rakesh Mohan, Chairman, National Transport Development Policy Committee(NTDPC), submitted on 1st March, 2014 to the Government of India. He also said that, the Railways is a victim of political decisions, as fare structure has not been revised in spite of steep increase in all the utilities of the Indian Railways. He pointed out that, AIRF has wholeheartedly cooperated with the Indian Railways in getting cash surplus to the tune of over Rs.66,000 crore as on March 2009. He said that, AIRF would urge upon the Ministry of Railways to rescind the decision of inducting FDI in the Indian Railways and not to compel the AIRF to launch country-wide agitations, which would disturb industrial peace in the Indian Railways. Com. Shiva Gopal Mishra, while strongly opposing government’s move of FDI, cautioned the Ministry of Railways that vide policy letter issued by the Government of India(Ministry of Commerce & Industry, Department of Industrial Policy & Promotion) Indian Railways have been thrown open for private parties, right from construction, operation and maintenance. Up till now, there had been a policy of the Government of India because of security and safety reasons, the FDI will not be allowed in the Atomic Energy and Indian Railways. We do not understand the reasons of the U-Turn, and would like to know that the reasons for whom there had been a ban on FDI in Indian Railways has now become infructuous. He also mentioned that the Indian Railways one-by-one are handing over many of the activities to private parties without consulting the recognized federations. He said that, recently a scheme of Yatri Ticket Suvidha Kendra(YTSK) has been introduced, which has earlier banned, where we feel that the RTSAs, which were banned due to serious malpractices and involvement of the touts, have been legalized in the name of YTSK. He further said that this scheme, which has been propagated as a facility to users, will definitely cost them high and defame the Railways in future. He also mentioned that the Railways have unnecessarily taken decision of engaging Gate Councilors/Gate Mitras for manning Unmanned Level Crossings, which was not at all the responsibility of the Railways under Motor Vehicle Act. If we are really interested to man the Unmanned Level Crossings, we should provide regularly recruited Gatemen on these Unmanned Level Crossings, and I am sure that, these Gate Mitras would not help the Railways as well as travelling public in any way. He said that, there is a great rumour that the Railway Board is going to be restructured, but the recognized federations are not known about any restructuring. This rumour is creating lot of dis-credibility to age-old system of the Railway Board, which is renowned world over for managing such a huge organization under one umbrella. He said that there are lot of talk about High Speed Trains(HSR). Though personally I do not feel that there is any need of HSR in this country, but in any case if anybody wants to have the HSR Projects, those should not be on the cost of the Indian Railways. Coming to the point of FDI, Shri Mishra mentioned that, we are not against the development of the Railways, but before bringing FDI, we should also calculate the Foreign Direct Overflow(FDO). He said that, allowing foreign companies in all the sectors, what will happen to our existing system. He mentioned that, during discussions in the Expert Committee Meeting he had raised his apprehensions about the factories being installed on PPP basis for locomotives and coaches with assured off-take. Will it affect our existing Production Units or not is still unanswered. He also raised his apprehension that, after the lease period, these sick units will be handed over to the Railways, which will be a further burden on the IR in future. He said that he has written a letter to Hon’ble MR and wants to discuss things threadbare. He told the Full Board that the AIRF after 1974 general strike has been a partner in progress and has tried its level best to maintain industrial peace, but in such conditions we cannot guarantee industrial peace on the Indian Railways in future. He further said that, for any breach in industrial peace, at least we will not be responsible because all the major decisions are taken at the back of us. He demanded from the Railway Board that, before going ahead on FDI Policy, our meeting should be arranged with Hon’ble PM, FM and 3 MR, so that we should also explain our stand and apprehensions to them to avoid any precipitative action in future. Com. J.R. Bhosale pointed out, if new infrastructure is created through the FDI, Indian Railway System will be forced to close down the present Workshops and PUs, which are efficient to fulfill the need of the Railway System today. He also suggested that a detailed study should be carried out, as to why despite tremendous increase in the number of passenger and goods trains, why financial position of the Indian Railways has deteriorated. He also cautioned that, without taking corrective action for finding out the reasons of the downfall of the economy, a further burden by way of FDI will put the Indian Railways economy in doldrums, and therefore, AIRF totally opposes the FDI in the Indian Railway System on merit. At the end, the CRB assured that he will convey the feeling of both the federations to Hon’ble Minister for Railways. Friends! Continue and intensify the agitations and observe “All India Demands Day” on 19th September, 2014 in a magnificent way, so that the Government of India could realize the anger of the Railwaymen.
Posted on: Fri, 12 Sep 2014 12:02:52 +0000
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